Chapter 6

Question 1

Entrepreneurs

Answer 1

People with vision, drive, and creativity who are willing to take the risk of starting and managing a business to make a profit or greatly changing the scope and direction of an existing company

Question 2

Intrapreneurs

Answer 2

Entrepreneurs who apply their creativity, vision, and risk taking within large corporations rather than starting companies of their own

Question 3

Small business

Answer 3

A business that is independently managed, is owned by an individual or a small group of investors, is based locally, and is not a dominant company in its industry

Question 4

Business plan

Answer 4

A formal written statement that describes in detail the idea for a new business and how it will be carried out. It includes a general description of the company, the qualifications of the owner(s), a description of the product or service, an analysis of the market, and a financial plan

Question 5

Debt

Answer 5

A form of business financing consisting of borrowed funds that must be repaid with interest over a stated time period

Question 6

Equity

Answer 6

A form of business financing consisting of funds raised through the sale of stock (i.e., ownership) in a business

Question 7

Angel investors

Answer 7

Individual investors or groups of experienced investors who provide funding for start-up business

Question 8

Venture capital

Answer 8

Financing obtained from investment companies that specialize in financing small, high-growth companies and receive an ownership interest and a voice in management in return for their money

Question 9

BDC

Answer 9

Business Development Bank of Canada:
Bank that provides small- and medium-sized businesses with flexible financing, affordable consulting services, and venture capital